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Ben Grech
The value of arrears and tenancy claims fell in 2025 compared with 2024, according to new data from Reposit, suggesting a slight easing of financial pressure in the rental sector.
The average arrears value dropped 8%, from £2,143 to £1,980, while the average claims value fell just over 2%, from £1,207 to £1,178.
Despite lower monetary values, the number of cases increased slightly, indicating that more tenants faced difficulty even as individual debts were smaller.
The reduction in arrears may reflect slower rental growth. ONS data shows average UK monthly rents rose 4.0% to £1,368 in the year to December 2025, down from 4.4% in November.
Wider mortgage data also points to modest improvement, with UK Finance reporting 9,520 buy-to-let mortgages in arrears of 2.5% or more in Q4 2025, 9% fewer than the previous quarter, and 770 properties taken into possession, down 14%.
Landlords and tenants continue to contend with high borrowing costs, stretched affordability, and a changing regulatory environment.
Ben Grech, CEO of Reposit, said: “It’s encouraging to see the average value of arrears and claims falling. However, the marginal rise in case volumes shows that financial pressure across the sector remains.
“At the same time, the Renters’ Rights Act is creating a more complex operating environment for landlords, fundamentally changing how arrears and repossessions are managed. With the abolition of Section 21, many landlords are understandably becoming more cautious in their approach to rent arrears.
“The average cash deposit now stands at £1,296 which is £629 below the average arrears value. This shortfall highlights the limitations of traditional five-week deposits which often fail to provide adequate protection when arrears escalate.
“As a result, we’re seeing growing demand for deposit solutions that offer greater financial protection for landlords and are FCA-regulated, while also reducing compliance risk for agents in light of the new regulations.”
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